7 months into the GST era, most businesses have become conversant with the basic information they need to be on top of, as far as their goods and services are concerned. The information is nothing but – the GST rates, HSN codes, SAC codes etc. which will help them to calculate GST faster, prepare GST compliant invoices faster and therefore, conduct businesses faster.
However, there are many scenarios, wherein a businessman may be faced with an amount excluding GST, or with an amount including GST. In the fast paced business world, one needs to know the quickest method of determine both GST exclusive and GST inclusive prices, so as to make quick sales and purchase decisions. Most countries have found useful in these circumstances a GST calculator, India too will be no different. In fact with the right knowledge of the formula, one can create a GST tax calculator in excel and keep it handy. However, the first step to be able to maintain and use a GST calculator, is to be familiar with the GST rates.
GST Rate Schedule for Goods
Under GST, there are 7 specified rates for goods, each of which have been classified under a Schedule in the GST Rates Booklet for Goods. They are as follows:
- Schedule I: Nil Rated
- Schedule II: 0.25%
- Schedule III: 3%
- Schedule IV: 5%
- Schedule V: 12%
- Schedule VI: 18%
- Schedule VII: 28%
Under each Schedule, the full list of specified Goods have been provided under two columns – "Chapter/Heading/Sub-heading/Tariff item" which provides the information of the HSN Codes & “Description of Goods” which provides the unique description of the goods for the benefit of the business.
GST Rate Schedule for Services
Under GST, there 5 specified rates for services, each of which have been classified in the GST Rates Booklet for Services. They are as follows:
- Nil Rated
GST Tax Calculator
Due to the simplification of the indirect taxation regime, the calculation of the applicable taxes has become much simpler. The GST Rates applicable on the various goods or services can now be calculated, based on the nature of transaction – inter-state or intra-state.
Intra-State GST Tax Calculator
In case of Intra-State transactions, GST can be calculated as follows:
- CGST = Applicable GST Rate / 2
- SGST / UTGST = Applicable GST Rate / 2
In other words, CGST + SGST / UTGST = Applicable GST Rate
Inter-State GST Tax Calculator
In case of Inter-State transactions, GST can be calculated as follows:
- IGST = Applicable GST Rate
Note: Wherever applicable, GST Compensation Cess should be added to the applicable GST rate for the correct tax calculations. Even a GST credit calculator, will be based on the same principles.
Thus, a simple formula arises:
- GST Amount = (Original Cost*GST Rate Percentage) / 100
- Net Price = Original Cost + GST Amount
Reverse GST Calculator
However, in those cases, where a price inclusive is mentioned, a reverse GST calculator will need to be applied. Like above, this also will be based on a simple formula:
- GST Amount = GST Inclusive Price - (GST Inclusive Price * (100/(100 + GST Rate Percentage)))
- Original Cost = GST Inclusive Price - GST Amount = (GST Inclusive Price * (100/(100 + GST Rate Percentage)))